South Africa has room for small and big farms

SA needs both big and small farms as they all serve society in different ways 

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Venter, Crosby discuss land issue at workshop

The parliamentary decision to proceed with the process of amending Section 25 of the Constitution, to provide for land expropriation without compensation, has made headlines in South Africa.

That is why Prof Johan Willemse's next agricultural market workshop, which takes place in Bloemfontein on 13 April 2018, focuses on land issues and this will be discussed by several experts. Theo Venter, political analyst of the North-West University, and Annelize Crosby, Head of Agri SA's Centre for Excellence on Land, will be the guest speakers.

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Absa Agri Trends Report – 9 March 2018

Holy Guacamole! You had me at “Avocado”

The demand for avocado outstrips the ability of the industry to ramp up production and to meet the global demand with sufficient supply.  The lack of sufficient breeding stock underpins the price levels for avocado. This trend will most likely support a growing market, which encourages growers to invest in expanding production.  However, agricultural land with sufficient water that meets the requirements for high yields and delivery during the best priced marketing windows overseas is limited.  Forestry land under Bloekom production and fields under sugar cane falls prey to new developments and the establishment of avocado orchards increase in both the Eastern and Western Cape provinces.  South Africa grows about 17 500ha of avocados.  The 2015/2016 drought negatively affected avocado yields in 2017, which resulted in lower-than-average production levels. Moreover, as 2017 was an off-season, which usually tends to deliver lower yields, production declined even further. Harvesting for the current season just started. It will be an interesting season to track and see if actual exports for 2018 meet the expectations of the avocado industry.

Click here for the Absa Agri Trends Report.

 

Economic Outlook 2018 (Agri SA)

South Africa kicks of 2018 with a relatively strong nominal exchange rate towards the lower end of R12 to the dollar following the election of Mr Cyril Ramaphosa as leader of the ANC in their December 2017 elective conference. The strengthening Rand has already led to a reduction in the regulated price of petrol and diesel in January 2018, and should also translate into lower inflationary pressure and possibly even deflation of imported goods. 

Read more: Economic Outlook 2018 (Agri SA)
 

Absa Agri Trends Report – 16 February 2018

Broiler imports from Europe decline due to bird flu

As a result of the bird flu outbreaks in the EU towards the end of 2016, imports from this region were restricted.  After that, Brazil has on average been the main country of origin for South African broiler imports, followed by the US. It is however important to note that the bulk of the imports from Brazil are mechanically deboned chicken, with these products accounting for up to 60%. US imports of frozen bone in portions resumed in January 2016. Under the terms of the AGOA agreement. The US may export 65 000 tons of bone-in frozen chicken per annum, free from anti-dumping duties (cycle April to March). As a result of this agreement, broiler imports from the US tend to significantly increase for the months towards the 31st of March, as exporters are rushing to use up the remaining quota by the end of March each year. Recently, the strengthening Rand lowered the import price for broiler meat.  A weakening Rand usually assist the protection of the industry against competing less expensive imports.

Click here for the Absa Agri Trends Report.

 

Absa Agri Trends Report – 2 February 2018

Lower wheat production and its effect on the economy

The expected commercial production of wheat in South Africa is about 1.4 million tons, which is almost 23% less than the previous season. The decline was driven by poorer than expected yields, especially in the Swartland area. In the Western Cape 325,000 ha of wheat had been planted of which 200,000 hectares had been planted in the Swartland. Importing plans are already underway to supplement SA’s local demand for wheat. Looking solely at the wheat industry in the Western Cape, the industry estimates a loss of about R1.7 billion to R2 billion in gross incomes.
Summer rainfall areas are likely to receive late summer rains, which could result in late winter rainfall again for the Western Cape. However with prudent financial planning, risk mitigating strategies and sustainable farming practices we believe our producers will find a way to get through this challenging time and prosper!

Click here for the Absa Agri Trends Report.

 

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